Property Tax Abatement for Solar Electric Systems (North Carolina)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Property Tax Abatement for Solar Electric Systems|
|Incentive Type||Property Tax Incentive|
|Applicable Sector||Commercial, Industrial, Residential, Agricultural|
|Eligible Technologies||Solar Thermal Electric, Photovoltaics|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||80% of the appraised value|
|Program Administrator||N.C. Department of Revenue|
|Date added to DSIRE||2008-08-11|
|Last DSIRE Review||2014-09-11|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
In August 2008, North Carolina enacted legislation that exempts 80% of the appraised value of a "solar energy electric system" (also known as a photovoltaic, or PV, system) from property tax. For the purposes of this assessment, the term "solar energy electric system" means "all equipment used directly and exclusively for the conversion of solar energy to electricity." This incentive is effective for taxable years beginning on or after July 1, 2008.
A Memorandum sent to County Commissioners in February 2011 clarified that residential PV systems that are not used to generate income or in connection with a business may be entirely exempt from property taxes as non-business personal property. The Memorandum provides further guidance for determining if a system can be exempted as non-business personal property. System owners should review the Memorandum and consult their local property assessment office if they have questions.
|Contact Name||Taxpayer Assistance - NC DOR|
|Department||N.C. Department of Revenue|
|Address||Post Office Box 25000|
|Place||Raleigh, North Carolina|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||N.C. Gen. Stat. § 105-275 (section 45)|
|Authority 2:||North Carolina Department of Revenue Solar Energy Electric Systems Memo|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.